About

Kardell

The Kardell paper mill was established by the Kardell family near the Cherokee River in southeastern Ontario. The Paper mill is a successful company that generates a revenue of 1.7 billion per year and its original mill employs 500 people within the Riverside community. The investors, employees, legal team and residents have brought up issues concerning Kardell original paper. As CEO of Kardell Paper Company, I would like to address all of the issues and/or concerns that have been presented by the legal team, employees, investors and residents of Riverside concerning the Kardell Paper Company using the chemical Sonox. I would first like to state that Kardell is a company that is very much concerned with everyone’s wellbeing and hope that our decision is a happy median for everyone. I would like to give a little background on everyone’s concern and then address them all before giving my decision. The residents of Riverside concern is that the chemical Sonox being dumped into the river is possibily causing an increase in health conditions; however that the opportunity to recycle the water waste would result in a layoff that could not be afforded by the community. Their suggestion is to continue research on the chemicals being dumped into the river and how they are related to health conditions. As research continues, if enough evidence shows that waste is linked to health conditions, reconsider the renovations of the plant. The investors of Kardell Paper Company concern is the potential danger if there is link between Sonox and health issues in the community. Another concern is that the company can be faced with lawsuits if link is proven to be true. Their suggestion is to retrofit the plant to incorporate the new technology which will allow waste to be reclaimed and sold to chemical producers. The employees of Kardell Paper Mill concern is levels of the chemical Sonox that is being allowed to get into the water and the atmosphere over the past two years and the...

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...They must be confirmed they are free from Sonox Poisoning and receive a free medical treatment if they are confirmed infected.
The investors cares about this issue because Kardell most likely have to make improvements in the filtering of waste water or convert to a system of recycled water. Any changes that shut down the plant for any period of time will harm the company and the investors also. At the same time, they are also worried about the pollution caused as a result of operations and would like to curtail environment damage.
Riverside citizens concerned about the pollution of Sonox and its possible side effects on their city. They would like the company to implement new procedures that would be in the best interest of both Kardell and the community.
Kardell legal council cares about Sonox issue because it is their responsibility to ensure that the company is complying with all the rules and regulations on operations and environmental safety. Thus, their main concerns are lawsuits that could arise if it is proven that Sonox is related to the medical issues such as the high rates of miscarriage and respiratory issues that community is facing.
Q2: Which stakeholders and interests are the most important? Why?
All the citizens of the Riverside city is the most important stakeholders that Kardell must taking care. Even though other stakeholders are concerns with this issue, the implications will highly...

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BUSS ETHICS & CORPORATE GOVERNANCE
CRG 520
CASE STUDY
( KARDELL PAPER CO. )
( GROUP 2 )
PREPARED BY :
FAIZUL HISHAM BIN MOHD ALIAS : 2011672616
AHMAD FAISAL BIN KAMARUZAMAN : 2011837032
NURUL NADIA BINTI MOHD NOOR AZMI : 2011870322
RAJA FARADYNA RAJA ISKANDAR : 2011284874
NORASHIKIN BINTI MD AMIN : 2011405672
PREPARED FOR:
MOHD DANIAL AFIQ BIN KHAMAR TAZILAH
DATE OF SUBMISSION:
11-NOV-2012
ACKNOWLEDGEMENT
First and foremost, we would like to thank to our lecture of this subject CRG520, Sir Mohd Danial Afiq Bin Khamar Tazilah for the valuable guidance and advice. He inspired us greatly to complete this assignment. Him willingness to motivate us contributed tremendously to our assignment. We also would like to thank him for showing us some example that related to the topic of our assignment.
Besides, we would like to thank the authority of University Technology Mara (UITM) for
providing us with a good environment and facilities to get idea for completed this assignment. Also, we would like to take this opportunity to thank to the Faculty of accountancy of University Technology Mara (UITM) for offering this subject, It gave us an opportunity to participate and learn about the Buss Ethics & Corporate Governance
Finally, an honourable mention goes to our families and friends for their
understandings and...

...Background
The Kardell paper mill was established at the turn of the century on the Cherokee River in southeastern Ontario by the Kardell family. By 1985, the Kardell Paper Co. had outgrown its original mill and had encompassed several facilities in different locations,
generating total revenues of $1.7 billion per year. The original mill continued to function and was the firm’s largest profit center. The Kardell family no longer owned shares in the firm, which had become a publicly traded company whose shares were widely held.
Kardell Paper Co. was a firm with a record of reporting good profits and had a policy of paying generous bonuses to the chief executive officer and other senior executives.
Kardell’s original mill was located near Riverside, a community of 22,000. Riverside was largely dependent on the mill, which employed 500 people. The plant, while somewhat outdated, was still reasonably efficient and profitable. It was not designed with environmental protection in mind, and the waste water that discharged into the Cherokee River was screened only to remove the level of contaminants required by provincial regulation. There were other industrial plants upstream from the Kardell plant. The residential community of Riverside, five miles downstream from the plant, was home to
many of the Kardell plant’s management, including Jack Green, a young engineer with two...

...An Ethical Analysis of Kardell Paper Company Decision
Executive Summery
The Board of directors of Kardell Paper Company should accept the installation of the new processing technology witch protects the environment by refining the company's waste water .Implementing this new technology will increase the company's long- term profitability and reputation by providing enough power and ability to compete and operate efficiently in the future market.
This ethical solution is offered, after analyzing Kardell's board of directors' decision to refuse the new technology due to its high turn over costs. The impacts of this decision on the company's primary stakeholders is studied carefully by using the 5-question ethical approach. The assessment has been made by comparing the profitability, legality, fairness and rightness of the company's decision and its impacts on major groups of stakeholders and their interests.
Introduction
The Kardell Paper Company (KPC) is a publicity traded company with good financial record and a profit of $1.7 million per year.Kardell's original mill which is not designed with accordance to high environmental protection standards, is located near the Riverside, a community of 22,000 residents.(Brooks 371) The local community has been suffering from an unusually high rate of miscarriages and respiratory disorders since 1985.Therefore,in the same year, a research has been done on the water sample of the river...